Our Solutions
Our Solutions
ASSET BASED LOANS
If you’re in need of financing for your business, asset based loans are a unique and flexible solution. With asset-based financing, you can leverage your company’s tangible assets, such as accounts receivable, inventory, equipment, or real estate, to secure the funding you require. This type of financing allows businesses to unlock the value of their assets and access working capital for various purposes, including expansion, inventory management, debt restructuring, or funding new projects. At AmRock Financial, we can help you by tailoring a financing solution that suits your specific business needs.
Why Asset Based Loans
Asset-based lending offers flexibility, as the borrowing capacity can increase as the value of the assets grows. This allows businesses to access additional funds as they expand and generate more valuable assets.
How does it work?
To obtain a loan based on your assets, the following steps need to be taken in consideration:
- Evaluation of the Assets: the borrower's assets can include accounts receivable, inventory, equipment, or real estate.
- LTV Ratio: The lender determines the loan-to-value (LTV) ratio, which represents the percentage of the asset's value that you can borrow against.
- Borrowing Base: the borrowing base is the total value of the eligible assets used to secure the loan. The borrowing base is often calculated based on a percentage of the asset's appraised or market value.
- Loan Structure: Based on the borrowing base, the lender determines the loan amount that can be provided. This amount can be in the form of a revolving line of credit or a term loan, depending on the borrower's needs and the lender's terms.
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ASSET BASED FUNDING
FAQ
Assets commonly used as collateral in asset-based lending include accounts receivable, inventory, equipment, machinery, real estate, and sometimes intellectual property or contracts.
The loan amount is typically determined based on the value of the eligible collateral, known as the borrowing base. Lenders typically lend a percentage of the appraised or market value of the assets, known as the loan-to-value (LTV) ratio.
Asset-based lending offers businesses increased access to working capital, flexibility in loan structures, and the ability to unlock the value of their assets. It can be an alternative financing option for businesses with limited credit history or seasonal cash flow fluctuations.
Lenders often conduct evaluations of the assets, which may include appraisals, inventory audits, accounts receivable aging analysis, or equipment inspections. These assessments help determine the eligible collateral value and the borrowing capacity.
Asset-based lending can be suitable for businesses of various sizes, from small and medium-sized enterprises (SMEs) to larger corporations. The specific eligibility criteria and lending terms may vary depending on the lender.
Asset-based lending can be utilized by businesses across various industries, including manufacturing, wholesale, distribution, transportation, construction, and service sectors. The suitability may depend on the nature of the assets and their marketability.
Asset-based lending differs from traditional bank loans as it focuses on the value of the collateral rather than solely relying on the borrower’s creditworthiness. This allows businesses with lower credit scores or unique financing needs to access funding.
Yes, asset-based lending can provide businesses with the working capital needed to manage cash flow gaps, fund operations, purchase inventory, cover payroll, or invest in growth opportunities for the business.
Why Amrock Financial?
AmRock Financial hasprovided $1 billion + in financing to more than 400+ small and mid-sized businesses in the US and Canada over the last 16 years, working with a pre-approved network of 1700+banks and Non-bank lenders nationwide.
If you are looking for a business loan, refinancing, or additional working capital, we provide Debt Structures from $1 million to $100 million.
Although banks have reduced lending in today’s market there are many other funding options available to you.
If you’re interested in scheduling a 30 min introductory call, book a meeting here:
Overview of our
Financial Solutions
If you’re in need of financing for your business, asset-based lending provides a unique and flexible solution leveraging your company’s tangible assets.
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- 1001 Brickell Bay Drive 27th Floor Miami, Florida 33131
- 305-440-8480
- applications@amrockfinancial.com